Question

Carlos Cavazos, Director of Human Resources, is exploring employee absenteeism at the Plano Piano Plant. A multiple regression analysis was performed using the following variables. The results are presented below.
Variable Description
Y number of days absent last fiscal year
x1 commuting distance (in miles)
x2 employee's age (in years)
x3 single-parent household (0 = yes, 1 = no)
x4 length of employment at PPP (in years)
x5 shift (0 = day, 1 = night)


Coefficients Standard Error t Statistic p-value
Intercept 6.594146 3.273005 2.014707 0.047671
x1 -0.18019 0.141949 -1.26939 0.208391
x2 0.268156 0.260643 1.028828 0.307005
x3 -2.31068 0.962056 -2.40182 0.018896
x4 -0.50579 0.270872 -1.86725 0.065937
x5 2.329513 0.940321 2.47736 0.015584


df SS MS F p-value
Regression 5 279.358 55.8716 4.423755 0.001532
Residual 67 846.2036 12.6299

Total 72 1125.562



R = 0.498191 R2 = 0.248194 Adj R2 = 0.192089
se = 3.553858 n = 73

Which of the following conclusions can be drawn from the above results?
a) All the independent variables in the regression are significant at 5% level.
b) Commuting distance is a highly significant (<1%) variable in explaining absenteeism.
c) Age of the employees tends to have a very significant (<1%) effect on absenteeism.
d) This model explains a little over 49% of the variability in absenteeism data.
e) A single-parent household employee is expected to be absent less number of days all other variables held constant compared to one who is not a single-parent household.

Answer

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